All Engines
Financial & Trend

Utilization Trend Engine

Track Services Per Member Per Year Across 50+ Care Categories—Detect Overutilization, Underutilization, and Mix-Shift

The Utilization Black Box

Aggregate Utilization Reporting

  • "Claims volume up 8%" doesn't tell you which services increased
  • Cannot distinguish appropriate utilization from waste
  • No detection of mix-shift (ER → urgent care, inpatient → outpatient)
  • Missing preventive care gaps and chronic disease underutilization

Utilization Trend Engine

  • Services PMPY trending across 50+ categories (ER visits, MRIs, surgeries, etc.)
  • Overutilization flags: ER 4.2 PMPY vs. 2.8 benchmark
  • Mix-shift detection: hospital outpatient → ASC migration saves 40%
  • Preventive care gaps: mammogram rate 58% vs. 75% target

Utilization Decomposition Framework

python
# Utilization Trend Analysis utilization_categories = { 'emergency_room': { 'visits_pmpy': lambda claims: calculate_pmpy(claims, place_of_service='23'), 'benchmark': 2.8, 'target_range': (1.8, 3.2) }, 'inpatient_admits': { 'admits_pmpy': lambda claims: calculate_pmpy(claims, revenue_code='0100-0219'), 'benchmark': 0.065, 'target_range': (0.050, 0.080) }, 'mri_ct_scans': { 'scans_pmpy': lambda claims: calculate_pmpy(claims, cpt_prefix=['70', '71', '72', '73']), 'benchmark': 0.95, 'target_range': (0.70, 1.20) }, 'preventive_colonoscopy': { 'procedures_pmpy': lambda claims: calculate_pmpy(claims, cpt_code='G0121'), 'benchmark': 0.082, # Age 50+ eligible population 'target_range': (0.070, 0.095) } } def analyze_utilization_trends(current_claims, prior_claims, members): results = {} for category, config in utilization_categories.items(): # Current Period Utilization current_services = count_services(current_claims, config) current_member_months = members.current_period_member_months current_pmpy = (current_services / current_member_months) * 12 # Prior Period Utilization prior_services = count_services(prior_claims, config) prior_member_months = members.prior_period_member_months prior_pmpy = (prior_services / prior_member_months) * 12 # Trend Calculation utilization_trend = (current_pmpy / prior_pmpy) - 1 # Benchmark Variance benchmark_variance = (current_pmpy / config['benchmark']) - 1 # Flag Status if current_pmpy > config['target_range'][1]: flag = 'OVERUTILIZATION' elif current_pmpy < config['target_range'][0]: flag = 'UNDERUTILIZATION' else: flag = 'NORMAL' results[category] = { 'current_pmpy': current_pmpy, 'prior_pmpy': prior_pmpy, 'utilization_trend': utilization_trend, 'benchmark': config['benchmark'], 'benchmark_variance': benchmark_variance, 'flag': flag } return results # Example Output: # { # 'emergency_room': { # 'current_pmpy': 4.2, # 'prior_pmpy': 3.8, # 'utilization_trend': 0.105, # +10.5% # 'benchmark': 2.8, # 'benchmark_variance': 0.50, # 50% above benchmark # 'flag': 'OVERUTILIZATION' # }, # 'preventive_colonoscopy': { # 'current_pmpy': 0.058, # 'prior_pmpy': 0.062, # 'utilization_trend': -0.065, # -6.5% # 'benchmark': 0.082, # 'benchmark_variance': -0.293, # 29% below benchmark # 'flag': 'UNDERUTILIZATION' # } # }

Utilization Intelligence

Service Categories
50+ Types
ER, inpatient, outpatient, pharmacy, preventive, chronic care
Benchmark Sources
Milliman MedInsight
Industry utilization norms by age/gender
Care Gap Detection
Automated
Preventive services underutilization flags

Utilization Management

ER Overutilization

  • ER visits: 4.2 PMPY vs. 2.8 benchmark (50% excess)
  • Cost per ER visit: $1,850 avg
  • Implemented 24/7 nurse line + telemedicine
  • Reduced ER utilization to 3.1 PMPY
  • Saved $425K annually (1,100 avoided ER visits)

Preventive Care Gaps

  • Colonoscopy screening: 58% of eligible vs. 75% target
  • Mammography: 62% vs. 80% target
  • Member outreach campaign: reminder letters + incentives
  • Increased screening rates to 72% colonoscopy, 76% mammo
  • Avoided 2 late-stage cancer diagnoses (estimated $600K savings)

Site-of-Service Optimization

  • Colonoscopy: 60% hospital outpatient, 40% ASC
  • Hospital avg: $3,200, ASC avg: $1,900 (41% savings)
  • Steered to ASC: increased to 75% ASC utilization
  • Same quality outcomes, saved $195K on 500 procedures

Stop Guessing Where Care is Being Consumed

Track services PMPY across 50+ categories. Detect overutilization waste, close preventive care gaps, and optimize site-of-service mix.

Analyze Utilization